Prisma Properties AB

Quarterly Report • Nov 6, 2024

Interim report January - September 2024

July - September 2024

• Rental income totalled SEK 98 (85) million
• Net operating income amounted to SEK 88 (75) million
• Net financial items totalled SEK -28 (-51) million
• Profit from property management amounted to SEK 46 (12) million
• Adjusted profit from property management excluding items affecting comparability and exchange rate effects amounted to SEK 46 (29) million
• Unrealised changes in value of properties totalled SEK 31 (-5) million, corresponding to a value increase of 0.5%
• Net profit/loss for the period amounted to SEK 23 (-1) million, equating to SEK 0.17 (-0.02) per share before and after dilution
• Acquisition of a land property in Vänersborg with an underlying property value of SEK 3 million, where a rental contract has been signed with Rusta
• On 30 September, an agreement was signed to acquire the Gamlestaden 61:12 and 61:13 properties in Gothenburg, with an underlying property value of SEK 365 million after deduction of deferred tax

January - September 2024

• Rental income totalled SEK 291 (245) million
• Net operating income amounted to SEK 255 (221) million
• Net financial items totalled SEK -102 (-99) million
• Profit from property management amounted to SEK 82 (83) million
• Adjusted profit from property management excluding items affecting comparability and exchange rate effects amounted to SEK 109 (93) million
• Unrealised changes in value of properties totalled SEK -32 (-120) million, corresponding to a value decrease of -0.5%
• Net profit/loss for the period amounted to SEK -45 (-39) million, of which the figure attributable to the Parent Company was SEK -46 (-35) million, equating to SEK -0.34 (-0.35) per share before and after dilution
• Acquisition of five properties in Sweden with an underlying property value of SEK 327 million in total, of which one property was acquired through a non-cash issue in which Bonnier Fastigheter Invest became a new shareholder in Prisma
• In May, Prisma acquired the remaining part of a project in Umeå from the minority for SEK 7.5 million
• Since June 18, the Prisma share has been listed on Nasdaq Stockholm Mid Cap. In connection with the listing, 45.5 million new shares were issued, which brought the company SEK 1,185 million after deduction of issue costs

15 EMPLOYEES

6.6

PROPERTY VALUE SEK bn

124

PROPERTIES

5
TRANSACTIONS

Significant events since the end of the period

On 12 October, an agreement was signed to acquire the Noret 1:50 property in Mora, with an underlying property value of SEK 34 million. Possession was transferred on 31 October. On 31 October, an agreement was signed to acquire the Karise 9fb property in Karise By, Denmark, with an underlying property value of SEK 25 million.

Key performance indicators		Jul-Sep			Jan-Sep		LTM I	Full year
SEKm	2024	2023	Δ%	2024	2023	Δ%	23/24	2023
Property value	6 594	5 936	11,1%	6 594	5 936	11,1%	6 594	5 964
Rental income	98	85	16,0%	291	245	18,4%	390	345
Net operating income	88	75	16,6%	255	221	15,0%	347	314
Profit from property management	46	12	274,9%	82	83	-1,5%	97	98
Loan to value, net (LTV), %	28	46	-39,2%	28	46	-39,2%	28	45
Interest coverage ratio, factor	2,0x	2,0x		2,0x	2,0x		2,0x	2,1x

Alternative performance measures and definitions used in this report are outlined on page 27.

CEO's comments

A full quarter as a listed company

As we close the books for the third quarter, our first as a listed company, I see a quarter that has taken us several steps forward on our growth journey. Despite the quiet summer months that make up a large part of the quarter, we have established ourselves in Gothenburg through a strategic acquisition. We have also signed a number of important rental contracts, both with existing tenants and with new players in the discount segment. In order to increase our growth rate and become the Nordic region's leading developer and long-term owner in discount retail, we have also continued to build our organisation in preparation to gear up. We have many promising projects in our pipeline, and our focus going forward is to capitalise on all the opportunities we see.

Strong financial performance

Our Q3 results are in line with our expectations and show that we are moving forward at a stable pace. Rental income increased by 16% during the quarter, to SEK 98 (85) million, and net operating income rose 17% to SEK 88 (75) million. Adjusted profit from property management excluding items affecting comparability and exchange rate effects increased by 58% to SEK 46 (29) million. Our strong net lettings, which totalled SEK 12 million during the quarter, clearly show the strong demand we are seeing from discount players.

Opportunities in the discount segment

Discount retailers are showing strong interest in setting up business in both new and existing markets in the Nordics. With the acquisition of a retail park in Gamlestaden we have established ourselves in Gothenburg, and we continue to grow in all our segments in Sweden. It is particularly interesting to note that we have signed our first agreement with Lidl and the development of a new store in Mellbystrand. Alongside this we are continuing our expansion in Denmark, where we have signed agreements with supermarket chains Løvbjerg and Netto, and have leased a total of 14,000 square metres to BigDollar in four different locations.

Occupancy rate of 99%

The completion of several projects and our active efforts to renegotiate and extend rental contracts mean that we have maintained an average remaining contract length of 9.1 years for the second quarter in a row. The lease to Dollarstore in Växjö was an important addition, and a contributor to our continued high occupancy rate of 99%. These developments create a stable foundation for the company, and mean that we can focus on growth by identifying new potential projects and acquisitions together with our tenants.

In-house portfolio management

We have strengthened our organisation with several new key employees in order to achieve our growth targets; our in-house organisation is ready to take over management of our Swedish property portfolio on 1 January 2025. Our current management agreement with a third party expires at the end of this year, and this will entail a temporary increase in management costs during the transition period in Q3 and Q4. With our own portfolio management organisation, we can achieve continued growth in Sweden in the years to come, while retaining the current cost structure. At the same time, it affords us increased efficiency and control, as well as improved service for our tenants and business partners.

Sustainability focus

During the quarter, our new portfolio management organisation improved the energy classification of several properties, and we are working actively to ensure that our entire portfolio achieves energy class A–C. We have a strong ambition to integrate sustainability into all our operations. Our goal is for all our properties to be fitted with solar cells, and we are also working to offer fast charging stations for electric cars at all our sites, where the conditions exist. This makes it easier for tenants and customers alike to choose sustainable alternatives. As well as meeting our sustainability goals, these initiatives help to increase the attractiveness and future-proof the value of our properties.

Growth

In addition to our focus on realising our project pipeline and making strategic transactions, future structural agreements could be a way to further strengthen our position and accelerate profitable growth. We continuously analyse new markets for continued expansion, and see good opportunities to grow in both new and existing geographies. Our business model is based on growing alongside the leading discount chains, and it is crucial for us to understand where these players plan to expand over the next few years. By closely monitoring their development and needs, we can ensure that we are one step ahead and can offer strategically located properties to support their growth.

We are well equipped for the future, and will continue to evaluate and implement profitable acquisitions and projects in upcoming quarters. I look forward to continuing to build value alongside my coworkers, both for our tenants and shareholders.

Fredrik Mässing CEO

Strengths and competitive advantages of Prisma as an investment

• 1
• Attractive rent structures provide stable, resilient net operating income

Prisma generates stable net operating income through property management. The longterm stability of the net operating income is founded on the structure of the rental contracts.

• 1. New agreements are generally signed for 10 years ahead for retail and 20 years ahead for fast food restaurants.
• 1. Virtually all rental contracts are double or triple net contracts. Put simply, this means that the tenants are responsible for most of their expenses, such as utilities, tax, insurance and maintenance.
• 1. Moreover, the majority of the rental contracts are index linked to inflation.
• 2

Focus on a non-cyclical underlying market

Prisma focuses on the Discount and Grocery retail market. The discount market is fastgrowing and resilient across economic cycles. One clear example is the boom in the discount segment in recent years. In times of high inflation, consumers become more cost-conscious, and therefore more often do their shopping in discount stores and other establishments with a low-price profile.

3

Strong relations with successful, stable tenants

Prisma's main success factor lies in its strong relations and close dialogue with tenants. Our tenants include some of the leading players in their market categories, such as Dollarstore, Jysk, Willys and Rusta – all with clear growth agendas. We work closely with our tenants to identify new sites, locations and countries where they can set up businesses.

4

Properties in attractive locations

The properties of Prisma stand out by being in attractive, busy locations close to motorways and other major roads, and in retail parks in fast-growing suburbs.

5

A history of successful development projects

Prisma has a proven track record of successful development projects. Since 2016 the Executive Management Team have developed more than 70% of the current property portfolio – always working closely alongside the tenants.

6

Strong balance sheet

Prisma has secured stable, long-term bank financing, and our strong balance sheet enables continued high growth by taking advantage of project and acquisition opportunities.

7

Experienced EMT with significant ownership in the company

The Group management has extensive experience in property management and project development, and has well-established relationships with many of the tenants. Group management is supported by a board that has far-reaching expertise in the real estate sector, along with experience from senior positions.

Comment on performance

Period July – September 2024

Revenue

Group revenue for the period amounted to SEK 108 (94) million, SEK 98 (85) million of which was from rental income and SEK 10 (10) million from service income, which primarily comprises property costs invoiced separately. The economic occupancy rate was 98.9% (98.1). Revenue from the acquired property Segmentet 1 amounted to SEK 2 million in Q3. Most of this revenue is being liquidated as the property is to be vacated for new tenants and rebranding of the property.

Costs

Property costs for the period amounted to SEK 16 (14) million, of which SEK 10 (10) million was charged to tenants as per contracts. Costs from the acquired property Segmentet 1 amounted to SEK 1 million in Q3. Some of these costs are being liquidated as the property is to be vacated as described above.

The surplus ratio during the quarter amounted to 90% (89). Excluding Segmentet 1, the surplus ratio totalled 91%.

Central administration costs for the period totalled SEK 14 (11) million, mainly costs for company management and central support functions. Central administration costs will be slightly increased in the second half of 2024, as the incoming in-house portfolio management organisation will be reported here until 31 December 2024, i.e. for as long as the new organisation has costs that overlap with the costs of the existing third-party management company. No costs could be regarded as items affecting comparability related to the IPO during the quarter. In the same period last year, items affecting comparability amounted to SEK 4 million, primarily related to building the Group and preparations ahead of the IPO.

Net financial items

Net financial items amounted to SEK -28 (-51) million and were primarily interest expenses of SEK -38 (-41) million, as well as accrued interest income of SEK 10 million (3) for the period. The average interest rate on the balance sheet date was 5.30% (5.10). Currency effects during the period amounted to SEK 0 million (-13). From the third quarter of 2024, currency effects relating to intra-group transactions are reported in Other comprehensive income in accordance with IAS 21; see also Note 2 Accounting policies. Previous periods have not been recalculated.

Changes in value

Unrealised changes in value for the period amounted to SEK 31 (-5) million, mainly attributable to a decline in the average return requirement for investment properties. The return requirement including ongoing projects has decreased from 6.64% to 6.62% compared to the previous quarter.

The Group owns interest rate derivatives, and unrealised changes in the value of these totalled SEK -51 (1) million during the period as a result of falling market interest rates.

Earnings before tax, tax and net profit/loss

Earnings before tax amounted to SEK 27 (9) million. Tax for the period totalled SEK -4 (-10) million, of which current tax was SEK 2 (3) million and deferred tax SEK -6 (-13) million. The deferred tax figure for the period consists of deferred tax expense related to unrealised positive property values, and deferred tax income attributable to unrealised negative changes in the value of derivatives. Net profit/loss for the period amounted to SEK 23 (-1) million.

Period January – September 2024

Revenue

Group revenue for the period amounted to SEK 321 (279) million, SEK 291 (245) million of which was from rental income and SEK 30 (34) million from service income, which primarily comprises property costs invoiced separately. The economic occupancy rate was 98.9% (98.1). The total rental value on an annual basis was SEK 394 (360) million. Revenue from the acquired property Segmentet 1 amounted to SEK 11 million in the period. Most of this revenue is being liquidated as the property is to be vacated for new tenants and rebranding of the property.

Costs

Property costs for the period amounted to SEK 52 (47) million, of which SEK 30 (34) million was charged to tenants as per contracts. Costs from the acquired property Segmentet 1 amounted to SEK 4 million in the period. Some of these costs are being liquidated as the property is to be vacated as described above.

The surplus ratio during the period amounted to 88% (90). The surplus ratio during the period was negatively affected by Segmentet 1 in Q2 and Q3, and costs in connection with individual tenant changes in Q1.

Central administration costs for the period totalled SEK 71 (40) million, mainly costs for company management and central support functions. SEK 36 (18) million related to costs that can be regarded as items affecting comparability, primarily related to building the Group and preparations ahead of the IPO.

Net financial items

Net financial items amounted to SEK -102 (-99) million and were primarily interest expenses for the period. The average interest rate on the balance sheet date was 5.30% (5.10). Currency effects during the period amounted to SEK 9 million (9). From the third quarter of 2024, currency effects relating to intra-group transactions are reported in Other comprehensive income in accordance with IAS 21; see also Note 2 Accounting policies. Previous periods have not been recalculated.

Changes in value

The net change in the value of the property portfolio was SEK 630 (326) million. Unrealised changes in value for the period amounted to SEK -32 (-120) million, mainly attributable to a small rise in the average return requirement for investment properties, from 6.53% to 6.62%, and to a one-off reduction in the value of a project in Uppsala in the amount of SEK -50 million.

The Group owns interest rate derivatives, and unrealised changes in the value of these totalled SEK -66 (8) million during the period as a result of falling market interest rates.

Earnings before tax, tax and net profit/loss

Earnings before tax amounted to SEK -22 (-29) million. Tax for the period totalled SEK -24 (-10) million, of which current tax was SEK -3 (1) million and deferred tax SEK -21 (-11) million. The deferred tax recognised for the period is affected by the fact that deferred tax is not recognised for negative unrealised results attributable to properties whose value has fallen below the acquisition value. Net profit/loss for the period amounted to SEK -45 (-39) million.

Property portfolio

Property portfolio

Prisma is a Nordic developer and owner of properties in the Discount, Grocery and Fast Food categories, with tenants including Dollarstore, Jysk, Willys and others. On 30 September 2024, Prisma owned a total of 124 properties in Sweden, Denmark and Norway at a value of SEK 6.6 billion. The properties are strategically located, typically close to major road or motorway junctions.

	Letting area,	Property value,	Property value,	Rental value,	Rental value,	Occupancy rate,
Property portfolio	m²	SEKm	SEK/m²	SEKm	SEK/m²	economic, %
Sweden	238 411	5 360	22 482	345	1 447	99
Denmark	47 100	1 184	25 130	82	1 752	100
Norway	3 077	50	16 409	4	1 323	100
Investment properties, total	288 588	6 594		432		99%
Property	254 234	5 823	22 904	394	1 551	99
Project properties	34 354	771	22 441	37	1 088	100
Investment properties, total	288 588	6 594		432		99%

Investments and divestments

During the year, the company acquired and took possession of five properties in Sweden: one retail property in Huddinge municipality and one development property in Uppsala, as well as three land properties – two in Ljusdal and one in Vänersborg – with an underlying property value of SEK 327 (109) million. Investments in Prisma's own property portfolio totalled SEK 318 (313) million during the period.

Changes in the property portfolio

SEKm	2024-09-30	2023-09-30	2023-12-31
Investment properties
Fair value, opening balance	5 964	5 610	5 610
Acquisition	327	109	111
Investments in held properties	318	313	413
Unrealised changes in value	-32	-120	-162
Currency effect	16	26	-8
Fair value, closing balance	6 594	5 936	5 964

Property valuation

All properties are valued externally four times a year in connection with the quarterly financial statements, with the exception of properties taken over during the current quarter. In these cases, the agreed property value is used. In exceptional cases, project properties are valued internally at an early stage on the basis of the external valuation. All external valuations were conducted by CBRE and take place in accordance with IFRS 13 level 3. Investment properties are valued based on a cash flow model, whereby each property is assessed individually on future earning capacity and the market's return requirements. Rent levels on expiry of contract are assumed to correspond to estimated longterm market rents, while operating costs are based on the company's actual costs. The inflation assumption is 2% for 2024 and for remaining years in the calculation period. Project properties are also valued using this model, with a deduction for remaining investment.

At the end of the period, the property portfolio was valued at SEK 6.6 (5.9) billion. For the investment properties excluding project properties, the market valuation was SEK 5.8 (5.7) billion. The valuation yield at the end of the period was 6.62% (6.33) on average for the entire portfolio.

SEKm	30 Sep 2024 30 Sep 2023 31 Dec 2023
Investment properties
Investment properties	5 823	5 659	5 643
Project values	882	410	513
Remaining investments	-111	-132	-191
Fair value, closing balance	6 594	5 936	5 964

Return requirement

Yield requirements, %	Interval	Average
Sweden	5,71-8,11	6,66
Denmark	5,75-7,50	6,43
Norway	7,15-7,55	7,37
	5,71-8,11	6,62

Contracted annual rent and occupancy rate

As of 1 October 2024, contracted annual rent amounted to SEK 390 million. The economic occupancy rate on the same date was 98.9%, while the average remaining contracted term was 9.1 years.

Contract expiry structure *

	Number of	Leased	Annual contract value,	Proportion
Commercial, maturity	contracts	areas, m²	SEKm	of value,%
2024	3	259	1	0
2025	8	4 378	5	1
2026	2	649	1	0
2027	7	8 220	17	4
2028	11	7 354	13	3
2029	9	16 850	18	5
2030	13	34 646	63	16
2031	17	25 762	38	10
2032	31	65 235	78	20
2033+	125	88 271	156	40
Total	226	251 623	390	100

^* Average WAULT amount to 9,1 years.

10 largest tenants

Tenant		Annual rent, SEKm*	Annual rent, %**
	Category
Dollarstore	Discount	81	21%
Jysk	Discount	33	9%
Willys	Grocery	33	9%
Burger King	Fast food	24	6%
Rasta	Fast food	21	5%
CityGross	Grocery	13	3%
Jula	Discount	12	3%
Pizza Hut	Fast food	11	3%
Jem & Fix	Discount	11	3%
EKO	Discount	10	2%
Total		249	64%

^* Contracted rent + index, excl. service charges

Net lettings

Net lettings, i.e. new contracted annual rent minus annual rent terminated due to tenants moving out, amounted to SEK 39.6 million during the period January–September, mainly due to project properties. New lettings took place with a rental value of SEK 50.8 million, of which SEK 33.8 million is attributable to project properties, while terminations of contracts by customers amounted to SEK 11.2 million. The lag between net lettings and their effect on earnings is estimated at 6–18 months for investment properties and 9–24 months for project properties.

Rental income

Discount

Fast Food

Grocery

Other

^** Proportion of contracted rent +index, excl. service charges

Projects

Ongoing projects

Prisma has ongoing projects with investments totalling an estimated SEK 261 million, of which SEK 111 million remains to be invested. Ongoing projects are projects for which a contractor agreement is in place. Average yield on cost for ongoing projects is estimated at 7.5%.

The average economic occupancy rate for the project portfolio is 100%. During the year, five new constructions were completed in Sweden, two of which in Grocery, one in Fast Food and two in Discount. In Denmark two properties were completed during the year, one in Discount and one in Fast Food. All of the properties have been fully let and have a total annual rental value of SEK 18 million, with an average rental period of 15 years.

				Rental	Remaining	Invest-	Of which	Book
			Area,	value,	term, years	ment,	outstanding,	value,	Year of
Ongoing projects	Municipality	Category	sqm	SEKm	*	SEKm	SEKm	SEKm	completion
Ongoing projects, SE
Valsta 3:193	Sigtuna	Fast food	490	2,1	20	36	8	24	2024
Bykvarn 1:9	Eksjö	Discount	2 065	2,3	10	27	24	4	2025
Kläppa 27:16, 27:17	Ljusdal	Discount	3 300	3,9	10	46	31	17	2025
Total, SE			5 855	8,3	13	109	63	45
Ongoing projects, DK
4b, 4o, 4n Munkdrup
By, Kristrup mfl	Randers	Discount	6 460	9,4	13	113	12	129	2024
10ge, 10gf Støvring By,
Buderup	Rebild	Discount	2 500	2,9	11	39	36	4	2025
Total, DK			8 960	12,3	12	151	48	134
Total			14 815	20,6	12	261	111	179

^* Average remaining term

Possible projects

There is great potential in Prisma's project portfolio, and Prisma's current analysis is that projects corresponding to approximately 174,000 m² with an investment volume in the region of SEK 3.8 billion can be started over the next three years. Approximately 75,000 m² of this is expected to comprise Grocery. The following table shows a breakdown of planned projects by country and investment volume.

				Assessed
				investment,	Book value,
Possible projects *	Country	Category	Sqm, NRA	SEKm	SEKm
Building rights	Sweden	Discount	7 800	183	39
Building rights	Sweden	Grocery	35 997	926	385
Building rights	Sweden	Fast food	3 447	213	45
Building rights	Sweden	Other	8 031	123	101
Building rights	Denmark	Discount	2 250	38	22
Other	Sweden	Discount	41 212	572	0
Other	Sweden	Grocery	20 270	351	0
Other	Sweden	Fast food	1 530	68	0
Other	Sweden	Other	1 000	11	0
Other	Denmark	Discount	25 910	579	0
Other	Denmark	Grocery	18 726	523	0
Other	Denmark	Fast food	1 998	68	0
Other	Denmark	Other	5 500	129	0
Total			173 671	3 783	592

^* Possible projects must have a signed land contract in place. (Ownership of the land does not have to be registered and rental contracts do not have to be signed). Possible projects with a land allocation agreement or an option agreement in place are also included in the table when control of the land is held.

Information on the project portfolio is based on assessments regarding the size, focus and scope of projects. Furthermore, the information is based on estimates of future project costs and rental value. The estimates and assumptions should not be seen as a forecast. Estimates and assumptions involve uncertainties regarding the implementation, design and size of the projects, schedules, project costs and future rental value. Information about the project portfolio is reviewed regularly and estimates and assumptions are adjusted as a result of the completion of ongoing projects, the addition of new projects and changes in conditions.

Financial overview

Interest-bearing liabilities

Prisma finances its property portfolio exclusively through bank loans from Nordic banks. At the end of the period, total interest-bearing debt excluding accrued set-up fees amounted to SEK 2,947 (2,900) million. The average period for capital tied up is 2.1 years, and all liabilities are secured by real estate mortgages and/or shares in subsidiaries. The interest coverage ratio for the last four quarters was 2.0 (2.0) times and the gross loan-to-value ratio was 45% (49).

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Prisma uses interest rate derivatives in the form of interest rate swaps and interest rate caps to manage exposure to interest rate risk, and obtain the desired interest rate maturity structure. As of 30 September 2024, 85% of the loan portfolio was secured with interest rate derivatives. Interest rate swaps amounted to a nominal volume of SEK 2,241 (1,091) million, of which approximately SEK 2,014 million in SEK and the equivalent of SEK 227 million in DKK. Interest rate caps amounted to a nominal volume of SEK 255 (886) million, with a strike level of 3.00% and a remaining term of 4 years.

In accordance with accounting standard IFRS 9, derivatives are recognised at market value. For interest rate derivatives, this means that a surplus or deficit arises if the contracted interest rate in the derivative varies from the current market rate; this change in value is recognised in profit or loss. Changes in the value of derivatives during the period amounted to SEK -66 (8) million.

The average fixed-interest period for the loan portfolio is 3.1 years, with 19% of interest maturities due within one year. The average interest rate for the portfolio at the end of the period was 5.30% (5.10). On the assumption that all variable interest rates and received swap rates would be given on the determination date of September 30, the average interest rate would amount to 5.01%.

Sensitivity analysis

Based on existing loans and derivatives on 30 September 2024, a change of +/- 1 percentage point in the market rate of interest would increase/decrease the average interest rate by +/- 0.21 percentage points, which equates to an interest expense of +/- SEK 6 million a year.

Capital structure

	Fixed interest		Loan maturity *		Interest rate swaps, maturity structure
Maturity	SEKm	Share, %	SEKm	Share, %	SEKm	Average interest, % swap portfolio
Within 1 year	559	19	762	26	119	2,43%
1-2 years	425	14	1 037	35	425	2,91%
2-3 years	570	19	505	17	570	2,77%
3-4 years	510	17	419	14	500	2,70%
4-5 years	455	15	225	8	200	2,75%
5-6 years	200	7	-	-	200	2,73%
6-7 years	-	-	-	-	-	-
7-8 years	-	-	-	-	-	-
>8 years	227	8	-	-	227	2,27%
Total/average	2 947	100	2 947	100	2 241	2,71%

^* Total interest bearing liabilities in the statement of financial position includes arrangement fees allocated to a period, which explains the discrepancy between the table and the statement of financial position.

45% LOAN-TO-VALUE RATIO, GROSS

28%

LOAN-TO-VALUE RATIO, NET

56% EQUITY/ASSETS RATIO

2.0x

INTEREST COVERAGE RATIO

Current earning capacity

The table illustrates Prisma's current earning capacity excluding projects on a 12-month basis on 1 October 2024, considering the entire property portfolio on the balance sheet date. Properties acquired and occupied, along with projects completed during the period, have been converted to an annual rate. The aim is to highlight the Group's underlying earning capacity. It is important to note that current earning capacity does not equate to a forecast for the coming 12 months, since earning capacity does not include aspects such as changes in rents, vacancy, foreign exchange rates or interest rates.

Earning capacity is based on the contracted earnings of the property portfolio on the balance sheet date, with deductions for any rent discounts granted. Net property costs are based on the estimated remaining operating and maintenance costs over the past 12 months, along with property tax after separate invoicing. Property administration is based on estimated costs on a 12-month basis, taking into account the size of the property portfolio on the balance sheet date. Central administration is based on the organisation established on the balance sheet date, excluding cost items affecting comparability. Net financial items has been calculated on the basis of outstanding interest-bearing liabilities and Prisma's average interest rate including interest rate hedging on the balance sheet date, including accrued arrangement fees and reduced by interest charges to be applied to projects. Cash and cash equivalents on 30 September 2024 amounted to SEK 1,113 million and interest on deposits on the balance sheet date is estimated at approximately 3.3%. Cash and cash equivalents have been assumed constant in earning capacity below.

SEKm	2024-10-01
Annual contract value	390
Accrued rental discounts	-8
Rental income	382
Net Property costs	-20
Net operating income before property administration	362
Yield adjusted, % *	6,4%
Property administration	-20
Net operating income	342
Surplus ratio, %	90%
Yield earnings capacity, %	5,9%
Central administration	-40
Finance net	-115
Profit from property management	187
Number of outstanding shares at the end of the period, million	164,5
Profit from property management per share, SEK	1,13

* Yield adjusted is calculated before property administration and accrued rental discounts.

Sustainability

During 2023, the foundation was laid for Prisma Properties to work in a structured way with sustainability, as data on all the company's properties was updated with regard to energy performance. A plan for Prisma's sustainability management was also prepared, along with an action plan. A climate report for the company's operations in 2023 was produced in spring 2024, enabling Prisma to set targets according to the Science Based Targets initiative (SBTi). Prisma has also begun preparations for reporting in line with the EU taxonomy in spring 2024. Linked to this process, a climate risk analysis was carried out for Prisma Properties during winter 2023 and early 2024. In addition, Prisma conducted a double materiality assessment in the first half of 2024 to prepare for sustainability reporting in line with the Corporate Sustainability Reporting Directive (CSRD) for 2025.

The share

Since 18 June 2024, the Prisma share has been listed on Nasdaq Stockholm Mid Cap. At the end of the period there were approximately 3,200 shareholders. The price per share at listing was SEK 27.50 and the closing price on 30 September 2024 was SEK 26.75. Prisma has one type of share and each share entitles the holder to one vote. The number of shares amounts to 164,521,538 (100,100,000), while the average number of shares during the period was 134,442,214.

	2024	2023
Share data	Jan-Sep	Jan-Sep
Share price, SEK
- Lowest	23.32	n.a.
- Highest	28.17	n.a.
- Closing price	26.75	n.a.
Market capitalisation, SEK bn	4.4	n.a.
Share price/Long-term net asset value	93%	n.a.
P/E	neg.	n.a.
Share dividend yield	n.a.	n.a.

The ten largest individual owners on 30 September 2024 are shown in the table below.

Major shareholders as of 30/09/2024	Number of shares	Share of votes/capital %
Alma Property Partners II AB	57,711,693	35.1%
Alma Property Partners I AB	33,369,325	20.3%
Capital Group	9,781,818	5.9%
Bonnier Fastigheter Invest AB	8,807,382	5.4%
Swedbank Robur Fonder	6,500,000	4.0%
Länsförsäkringar Fonder	6,463,636	3.9%
Tredje AP-fonden	5,000,000	3.0%
Swedbank Försäkring	4,914,095	3.0%
ODIN Fonder	3,375,000	2.1%
Case Asset Management	3,203,229	1.9%
Other owners	25,395,360	15.4%
Total outstanding shares	164,521,538	100.0%
Of which, foreign shareholders	19,484,250	11.8%

Source: Data from, among others, Euroclear, Morningstar and Finansinspektionen, collected and analysed by Modular Finance AB.

Dividend policy

Prisma's goal is to generate the highest possible long-term total return for its shareholders. When determining the size of the dividend, the company's future investment needs, general position and the company's development are taken into account. Prisma shall continue to grow and, according to the board's assessment, the highest possible long-term total return is generated by reinvesting profits in the business to enable further growth through new development and acquisitions. Consequently, a need for liquidity arises, which means that future dividends will be low or not forthcoming in the next few years.

Net asset value

The long-term net asset value on 30 September 2024 was SEK 4,708 (2,937) million and is calculated in accordance with EPRA guidelines. The long-term net asset value per share was SEK 28.6 (29.4).

Share capital development

Year	Events	Change in No. of shares	Total No. of shares	Change in share capital	Share capital	Quotient value (SEK)
2022	Founded	25,000	25,000	25,000	25,000	1,000,000
2022	Share split	99,975,000	100,000,000	-	25,000	0.000250
2022	New share issue	100,000	100,100,000	25	25,025	0.000250
2023	Share split	1,100,000	101,200,000	-	25,025	0.000247
2023	New share issue	10,214,156	111,414,156	2,526	27,551	0.000247
2024	New share issue	8,807,382	120,221,538	2,178	29,729	0.000247
2024	Bonus issue New share issue (stock market	-	120,221,538	475,362	505,090	0.004201
2024	listing) Withdrawal of debenture	45,500,000	165,721,538	191,161	696,251	0.004201
2024	shares	-1,200,000	164,521,538	-5,042	691,209	0.004201
2024	Bonus issue	-	164,521,538	5,042	696,251	0.004232

Other information

Employees

The number of employees in the Group at the end of the period totalled 15 (7). The average number of employees during the period was 12 (6).

Share-option plan

At the end of the period, the Parent Company has issued a total of 2,850,600 call options which entitle Prisma's employees to acquire the same number of shares. The share-option plan runs for three years. The underlying share has an exercise price that exceeds the price on 30 September 2024, hence no dilution as a result of the existing share-option plan has been taken into account when calculating earnings per share.

Holding without controlling interest

In May 2024, Prisma acquired the remaining part of a project in Umeå from the minority for SEK 7.5 million, and thus no holding without controlling influence remains. The profit accrues in its entirety to the Parent Company's shareholders from and including the second quarter of 2024.

Risks and uncertainties

Prisma is exposed to many different risks and uncertainties. The company has procedures for minimising these risks.

Properties

Changes in value of properties

The property portfolio is measured at fair value. Fair value is based on a market value arrived at by an independent valuation institute and CBRE was engaged for the reporting period. All properties are valued by external parties on a quarterly basis. Any deviation from the external parties valuation is more conservative and carried out by the company management in consultation with Prisma's board of directors. There have been no changes in the valuation method since the latest annual report.

Prisma focuses on offering active property management focused on tenants in order to create good, long-term relationships with the tenant, which creates the foundation for maintaining stable value development in the property portfolio. The company's property development expertise also enables it to proactively manage risks relating to property value by ensuring the quality of the portfolio.

Rental income

Prisma's earnings are affected by the vacancy rate of the portfolio, bad debt losses and any reduction in rent. At the end of the period, the economic occupancy rate of the portfolio was 98.9% and the weighted average remaining contract period was 9.1 years. The majority of the company's revenue can be attributed to properties let to tenants operating in the discount retail sector. The risk of vacancies, bad debt losses and reductions in rent are affected by the tenant's willingness to continue to rent the property, the tenant's financial circumstances and external market factors.

Property costs and maintenance costs

The Group runs the risk of experiencing cost increases that it cannot offset through changes to its rental contracts. However, the risk is limited because over 90% of all rental contracts are double net, triple net, or net rental contracts where the tenant pays most of the costs related to the property, in addition to the rent. Unforeseen required repairs also pose a risk to the operation. Active, ongoing work is therefore under way to maintain and improve the condition of the properties to reduce the risk of repairs being required.

Financing

The Group is exposed to risks associated with financing activities in the form of currency risk, interest rate risk and refinancing risk. At the end of the period, the Group owned properties in Norway and Denmark, which means that the Group is exposed to currency risk. The currency risk is managed partly by assets being financed by borrowing in the same currency. Interest rate risk arises when the Group's earnings and cash flow are impacted by changes in interest rates. To reduce the risk of interest rate increases, the Group has interest rate derivatives in the form of interest rate caps and swaps. Refinancing risk is the risk that the company will be unable to refinance its loans when they mature. To mitigate the refinancing risk, Prisma works with several Nordic banks and institutions and has a debt maturity profile such that the loans do not mature at the same time.

Transactions with related parties

At the start of the year, the Group had a liability to Alma Property Partners II AB totalling SEK 30 million, which was repaid in full in January.

During the first quarter, a debt to Alma Uppsala Holding AB, a subsidiary of the main owner Alma Property Partners II AB, totalling SEK 92 million was raised. All debts were repaid in June. On the balance sheet date, the Group has no outstanding debts to related parties.

As a step to eliminate a potential future related party conflict, during the first quarter Prisma Properties has negotiated an agreement on future additional purchase price to a JV between Alma Property Partners II AB and Mässing Properties (CEO Fredrik Mässing). Prisma Properties paid an early redemption of the additional purchase price at a lower fixed amount, and in connection with this also wrote down the property Kungsängen 34:3 by SEK 49.5 million as of 31 March 2024.

Events since the balance sheet date

On 12 October, an agreement was signed to acquire the Noret 1:50 property in Mora, with an underlying property value of SEK 34 million. Possession was transferred on 31 October. On 31 October, an agreement was signed to acquire the Karise 9fb property in Karise By, Denmark, with an underlying property value of SEK 25 million.

The Group

Consolidated statement of profit or loss in summary

	Jul-Sep			Jan-Sep		LTM Full year
SEKm	Note	2024	2023	2024	2023	23/24	2023
Rental income	5	98	85	291	245	390	345
Service revenue	5	10	10	30	34	42	45
Property Costs		-16	-14	-52	-47	-66	-61
Property administration		-4	-5	-14	-11	-19	-16
Net operating income		88	75	255	221	347	314
Central administration		-14	-11	-71	-40	-89	-58
Finance net	6	-28	-51	-102	-99	-161	-158
Profit from property management		46	12	82	83	97	98
Unrealised change in value of investment properties		31	-5	-32	-120	-73	-162
Unrealised change in value of interest-rate derivatives		-51	1	-66	8	-119	-45
Realised change in value of interest-rate derivatives		-	0	-	0	0	0
Write-down intagible assets	7	-	-	-7	-	-17	-10
Profit/loss before tax		27	9	-22	-29	-113	-120
Current tax		2	3	-3	1	-5	0
Deferred tax		-6	-13	-21	-11	-26	-17
Net profit (-loss) for the period		23	-1	-45	-39	-144	-138
Net Profit/Loss for the period attributable to
Parent Company's shareholders		23	-2	-46	-35	-144	-133
Non-controlling interest			1	1	-4	0	-4
Net profit (-loss) for the period		- 23	-1	-45	-39	-144	-138
Consolidated statement of
comprehensive income
Net profit (-loss) for the period		23	-1	-45	-39	-144	-138
Items that have or may be reclassified to profit for the period
Translation difference for the period		-5	-6	-0	6	-9	-2
Other comprehensive income		-5	-6	-0	6	-9	-2
Total comprehensive income		17	-7	-46	-33	-153	-140
Comprehensive income for the period attributable to
Parent Company's shareholders		17	-7	-46	-29	-152	-135
Non-controlling interest		-	1	1	-4	0	-4
Comprehensive income for the period		17	-7	-46	-33	-153	-140
Profit/loss for the period attributable to Parent Company
shareholders before and after dilution, SEK		0,17	-0,02	-0,34	-0,35	-1,14	-1,33
Average number of outstanding shares, million		134,4	100,1	134,4	100,1	126,2	100,5

Consolidated statement of financial position in summary

		30 Sep
SEKm	Note	2024	2023	2023
Assets
Fixed assets
Intangible fixed assets
Goodwill	7	174	191	181
Other intangible assets		3	1	1
Tangible fixed assets
Investment properties	8	6 594	5 936	5 964
Equipment, tools and installations		2	-	2
Right of use assets		10	-	12
Financial assets
Derivates		-	72	18
Other long term receivables		2	1	1
Deferred tax asset		1	-	2
Total non-current assets		6 786	6 202	6 180
Current assets
Rental receivables		3	1	5
Other receivables		10	6	34
Prepaid expenses and accrued income		86	65	64
Restricted cash	9			154
Cash and cash equivalents		- 1 113	- 184	41
Total current assets		1 213	255	297
Total assets		7 999	6 457	6 477
Equity and liabilities
Equity
Share capital		1	0	0
Equity attributable to the Parent Company's shareholders		4 467	2 852	3 046
Equity attributable to non-controlling interests		-	6	6
Total equity		4 467	2 858	3 051
Non-current liabilities
Long-term interest-bearing liabilities	10	2 064	2 532	2 467
Derivates		43	-	-
Non-current finance lease liability		6	-	8
Deferred tax liability		373	349	352
Total non-current liabilities		2 486	2 880	2 827
Current liabilities
Short-term interest-bearing liabilities	10	872	365	401
Trade payables		10	49	31
Tax liabilities		16	25	26
Other current liabilities		12	183	39
Prepaid income and accrued expenses		135	96	103
Total current liabilities		1 045	718	600
Total equity and liabilities		7 999	6 457	6 477

Consolidated statement of changes in equity

SEKm	Share capital	Other contributed capital	Translation reserve	Retained earnings incl. profit/loss for the year	Total equity attributable to the Parent Company's shareholders	Non controlling interest	Total equity
Opening balance 2023-01-01	0	2 697	17	141	2 855	10	2 865
Net profit (-loss) for the period jan-sep				-35	-35	-4	-39
Other comprehensive income jan-sep			6		6		6
Comprehensive income for the
period	-	-	6	-35	-29	-4	-33
Transactions with owners
Shareholders' contributions received		26			26		26
Total	-	26	-	-	26	-	26
Closing balance 2023-09-30	0	2 723	23	106	2 852	6	2 858
Net profit (-loss) for the period okt-dec				-98	-98	-1	-99
Other comprehensive income okt-dec			-8		-8		-8
Comprehensive income for the
period	-	-	-8	-98	-106	-1	-107
Transactions with owners
New share issue	0	300			300		300
Total	0	300	-	-	300	-	300
Closing balance 2023-12-31	0	3 023	15	8	3 046	6	3 051
	Share	Other contributed	Translation	Retained earnings incl. profit/loss for	Total equity attributable to the Parent Company's	Non controlling	Total
SEKm	capital	capital	reserve	the year	shareholders	interest	equity
Opening balance 2024-01-01	0	3 023	15	8	3 046	6	3 051
Net profit (-loss) for the period				-46	-46	1	-45
Other comprehensive income			-0		-0		-0
Comprehensive income for the
period	-	-	-0	-46	-46	1	-46
Transactions with owners
Non-cash issue	0	276			276		276
Costs related to non-cash issue		-2			-2		-2
Bonus issue	0			-0	-		-
New share issue	0	1 251			1 251		1 251
Costs related to new share issue		-67			-67		-67
Long-term incentive program Acquisition of minority shares,				11	11		11
controlling
influence retained				-1	-1	-6	-8
Total	1	1 458	-	9	1 468	-6	1 462

Closing balance 2024-09-30 1 4 481 15 -29 4 467 - 4 467

Consolidated statement of cash flows in summary

	Jul-Sep				Jan-Sep		Full year
SEKm	Note	2024	2023	2024	2023	23/24	2023
Operating activities
Profit/loss before tax		27	9	-22	-29	-113	-120
Adjustments for non-cash items		14	16	91	104	206	219
Financial items		-6	13	-16	-9	-8	-
Unrealised changes of value, investment properties		-31	5	32	120	73	162
Realised changes in value derivatives		-	-	-	0	-0	0
Unrealised changes in value derivatives		51	-1	66	-8	119	45
Depreciation and amortization		1	-	10	-	21	11
Paid tax		-1	-1	-13	-6	-14	-7
Cash flow from operating activities before change in
working capital		40	24	56	69	79	92
Cash flow from operating activities
Change in trade recievables		12	-12	-11	1	-4	8
Change in other operating liabilities		-34	-1	-8	-22	-150	-165
Cash flow from operating activities		19	12	36	48	-75	-64
Investing activities
Investments in intangible assets		-0	-1	-3	-1	-3	-1
Investments in held properties		-75	-81	-318	-313	-418	-413
Acquisition of properties		-3	-44	-49	-109	-51	-111
Investments in tangible assets		-	-	-0	-	-2	-2
Sale of derivates		-	-	-	4	-	4
Investments in financial assets		-	-1	-5	-1	-159	-155
Returned deposited bank funds	9	-	-	154	-	154	-
Cash flow from (-used in) investing activities		-79	-126	-221	-419	-479	-678
Financing activities
Borrowings		-	27	167	390	167	390
Repayment of debts		-31	-20	-106	-29	-179	-103
Shareholders' contributions received		-	-	-	26	-	26
New share issue		-	-	1 185	-	1 485	300
Long-term incentive program		-	-	11	-	11	-
Cash flow from financing activities		-31	7	1 257	387	1 483	614
Cash flow for (-used in) the period		-91	-107	1 072	16	929	-127
Cash and cash equivalents at the beginning of the period		1 204	290	41	168	184	168
Exchange difference in cash and cash equivalents		-0	1	0	0	1	1
Cash and cash equivalents at the end of the period		1 113	184	1 113	184	1 113	41
Additional cash-flow statement disclosures
Interest received		0	0	0	0	3	3
Interest paid		-36	-40	-112	-108	-153	-149

Period July – September 2024

Cash flow for the period amounted to SEK -91 (-107) million. Cash flow from operating activities, investing activities and financing activities amounted to SEK 19 (12) million, SEK -79 (-126) million and SEK -31 (7) million respectively.

Cash flow from investing activities relates primarily to investments in own properties relating to project activities, as well as acquired property.

The change in cash flow from financing activities relates to the amortisation of long-term loans.

Period January – September 2024

Cash flow for the period amounted to SEK 1,072 (16) million. Cash flow from operating activities, investing activities and financing activities amounted to SEK 36 (48) million, SEK -221 (-419) million and SEK 1,257 (387) million respectively.

Cash flow from investing activities relates primarily to investments in own properties relating to project activities, as well as deposited bank funds returned during the period.

The change in cash flow from financing activities primarily relates to the new share issue in connection with the company's IPO in June, and to new loans raised in Sweden and Denmark.

Notes to the consolidated accounts

Note 1 General information

Prisma Properties AB (publ) ('Prisma'), corp. ID no. 559378-1700, is a limited company registered in Sweden with a registered office in Stockholm. The company's share has been listed on Nasdaq Stockholm Mid Cap since 18 June 2024. The address of the head office is Mäster Samuelsgatan 42, SE-111 57 Stockholm. The operations of the company and subsidiaries ('the Group') involve owning and managing grocery retail properties.

Note 2 Accounting policies

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. Disclosures in accordance with IAS 34 16A are made in the financial statements and accompanying notes. The Parent Company applies RFR 2 Accounting for Legal Entities and Sweden's Annual Accounts Act.

From Q3 2024, translation differences attributable to intra-group loans are recognised in Other comprehensive income in accordance with IAS 21, as the lending is considered to be part of Prisma's net investment in the international operation and the lending is not planned to take place in the foreseeable future. Comparison periods have not been recalculated. See also Note 6 Net financial items below. Other accounting policies applied in the interim report correspond to those applied when preparing the annual report for 2023. Other amended and new IFRS standards and interpretations from IFRS IC coming into effect during the year or in future periods are not expected to have a material impact on the Group's reporting and financial statements. Assets and liabilities are recognised at cost, except for investment properties and interest rate derivatives, which are measured at fair value.

The preparation of the interim report requires the company management to make a number of assumptions and judgements that influence earnings and financial position. The same judgements and accounting and valuation policies have been applied as in the annual report for Prisma Properties AB 2023. The company publishes five reports a year: three interim reports, one year-end report and one annual report.

Certain figures have been rounded, and the tables and calculations therefore do not always add up to the totals stated.

Note 3 Financial instruments

Financial instruments measured at fair value in the statement of financial position comprise interest rate derivatives. The fair value of

interest rate swaps is based on discounting estimated future cash flows in accordance with the contract's terms and maturity dates and using the market rate of interest on the balance sheet date. The interest rate swaps are classed as level 2 in the fair value hierarchy.

The carrying amount of financial assets and liabilities is considered to be a reasonable approximation of fair value. In the company's assessment, there has been no change in market rates of interest or credit margins since raising the interest-bearing loans that would have a material impact on the fair value of the liabilities. The fair value of rental receivables, other receivables, cash and cash equivalents, accounts payable – trade and other liabilities, does not differ significantly from the carrying amount because they have short maturities.

Note 4 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM is the function responsible for allocating resources and assessing the performance of the operating segments. Prisma's CEO is identified as the CODM. An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, and for which separate financial information is available. Prisma monitors its activities as a unit, the results of which are reported in their entirety to and evaluated by the CODM. The Group therefore reports only one segment.

Note 5 Distribution of revenue

Distribution of revenue	2024 Jan-Sep	2023 Jan-Sep	2023 Jan-Dec
Revenue per significant area
Rental income	291	245	345
Service revenue from tenants	30	34	45
Total revenue	321	279	390
Revenue by geography
Sweden	268	236	322
Norway	3	3	4
Denmark	49	40	65
Total revenue	321	279	390

Note 6 Net financial items

Net financial items include exchange rate differences which amounted to SEK 0 (-13) million for the quarter. For the period January– September, exchange rate differences amounted to SEK 9 (9) million.

Excluding exchange rate differences, net financial items for the quarter amounted to SEK -28 (-39) million, and for January– September to SEK -111 (-107) million.

From the third quarter of 2024, currency effects relating to intra-group transactions are reported in Other comprehensive income in accordance with IAS 21; see also Note 2 Accounting policies above. Previous periods have not been recalculated.

Note 7 Goodwill

Goodwill refers to deferred tax from the Group's formation in 2022. At the end of the period, goodwill amounted to SEK 174 (181) million. Impairment of goodwill is linked to unrealised decreases in value of underlying investment properties based on discounted cash flows. A goodwill impairment of SEK 7 (10) million was made during the period.

Note 8 Investment properties

At the end of the period, the property portfolio amounted to SEK 6,594 (5,964) million. Investment properties are measured at fair value in accordance with IAS 40.

SEKm	30/09/24	30/09/23	31/12/23
Investment properties Fair value, opening balance	5,964	5,610	5,610
Aquisitions	327	109	111
Investments in held properties Unrealised changes in	318	313	413
value	-32	-120	-162
Currency effect	16	26	-8
Fair value, closing balance	6,594	5,936	5,964

Note 9 Restricted cash and cash equivalents

Restricted cash and cash equivalents at the beginning of the year relates to deposited funds of SEK 154 million that have been repaid in full during the period.

Note 10 Interest-bearing liabilities

Interest-bearing liabilities at the end of the period totalled SEK 2,936 million (2,868). The item includes accrued set-up fees of SEK 11 million (14). The net loan-to-value ratio was 28% (45) and the average interest rate was 5.30% (5.31).

Parent Company

The Parent Company's activities consist of Group-wide functions and organisation for managing the properties owned by the subsidiaries. Operating revenues totalled SEK 18 (15) million, and operating profit/loss amounted to SEK -58 (-29) million. Profit/loss after financial items was SEK 4 (41) million. Net financial items include interest income from internal Group lending of SEK 107 (102) million.

Parent Company statement of profit or loss in summary

		Jul-Sep		Jan-Sep		Full year
SEKm	2024	2023	2024	2023	23/24	2023
Operating income	7	8	18	15	23	19
Operating expenses	-17	-17	-76	-43	-95	-62
Operating loss	-10	-9	-58	-29	-72	-43
Result from participations in Group companies	-	-	-	-	-13	-13
Interest income and similar profit/loss items	37	30	107	102	138	133
Interest expenses and similar profit/loss items	-15	-13	-45	-33	-56	-44
Income after financial items	13	8	4	41	-2	34
Group contribution received and given	-	-	-	-	68	68
Profit/loss before tax	13	8	4	41	66	102
Current tax	-	-	-	-	-	-
Net profit (-loss) for the period	13	8	4	41	66	102

Parent Company statement of financial position in summary

SEKm Note 2024 2023 2023 Assets Fixed assets Intangible fixed assets Other intangible assets 3 1 1 3 1 1 Tangible fixed assets Equipment, tools and installations 2 2 - 2 2 - Financial assets Investments in Group companies 1 870 1 860 1 846 Receivables from Group companies 1 729 1 321 1 419 Other long term receivables 1 1 1 Total financial assets 3 600 3 181 3 267 Total non-current assets 3 605 3 182 3 269 Current assets Other current receivables 0 1 1 Receivables from Group companies 451 109 319 Prepaid expenses and accrued income 5 9 3 Total current receivables 455 119 324 Cash and cash equivalents Cash and cash equivalents 947 10 1 Total cash and cash equivalents 947 10 1 Total current assets 1 403 129 324 Total assets 5 008 3 310 3 593 Equity and liabilities Equity Restricted equtiy Share capital 1 0 0 Non-restricted equity Retained earnings 4 861 2 992 3 292 Net Profit/Loss for the period 4 41 102 Total equity 4 867 3 032 3 393 Liabilities Liabilities to Group companies 113 214 154 Other liabilities 28 64 46 Total liabilites 141 278 200 Total equity and liabilities 5 008 3 310 3 593		30 Sep	31 Dec

Notes to the Parent Company accounts

Note 1 Accounting policies

The Parent Company has prepared its interim report in accordance with Sweden's Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities.

Differences between the accounting policies applied by the Group and Parent Company are shown below. The accounting policies stated below for the Parent Company have been applied consistently for all periods presented in the Parent Company's financial statements, unless otherwise stated.

Subsidiaries

Participations in subsidiaries and associated companies are recognised using the cost method, which means they are entered at cost less any impairment. Transaction fees are included in the carrying amount of holdings in subsidiaries.

Financial assets and liabilities

Due to the link between reporting and taxation, the Parent Company as a legal entity does not apply rules on financial instruments in accordance with IFRS 9, instead it applies as per the Annual Accounts Act and the cost method. Consequently, in the Parent Company, financial non-current assets are measured at cost less any impairment and financial current assets are measured at the lower of cost or net realisable value. Impairment of expected credit losses is measured in accordance with IFRS 9. Other financial assets are based on the impairment of market values for assets that are debt instruments.

Group contributions and shareholders' contributions

Group contributions paid and received are recognised as appropriations in accordance with the alternative rule. Shareholders' contributions are recognised directly against equity for the recipient and capitalised in shares and participations for the provider to the extent impairment is not required.

Leasing

The Parent Company has opted to apply the relief rules found in RFR 2, Accounting for Legal Entities. This means that all lease payments are recognised as a cost linearly across the lease period.

Signatures

The CEO hereby attests that the interim report presents a fair review of the Parent Company and Group's operations, financial position and profit, and that it describes the material risks and uncertainties faced by the Parent Company and the companies included in the Group.

Stockholm, 6 November 2024

Fredrik Mässing

CEO

Review report

Prisma Properties AB (publ), corporate identity number 559378-1700

Introduction

We have reviewed the condensed interim report for Prisma Properties (publ) as at September 30, 2024 and for the three-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of the review

We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.

Stockholm per the day that is shown by the electronic signature

Ernst & Young AB

Gabriel Novella

Authorised Public Accountant

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Key ratios

	2024	2023	2023
	Jan-Sep	Jan-Sep	Jan-Dec
Property-related key metrics
No. of properties	124	117	118
Letting area, m²	288 588	253 125	262 135
Investment properties, SEKm	6 594	5 936	5 964
Investment properties, excluding projects, SEKm	5 823	5 659	5 643
Investment properties, SEK/sq.m.	22 849	23 452	22 752
Rental value, SEKm (excl. project properties)	394	360	384
Rental value, SEK/m² (excl. project properties)	1 551	1 538	1 606
Average remaining term, years	9,1	9,5	9,4
Net lettings, SEKm	40	20	38
Occupancy rate, economic, %	98,9	98,1	98,2
Occupancy rate, lettable area, %	99,0	98,8	99,0
Yield, properties (%)	5,8	5,2	5,6
Surplus ratio, %	87,7	90,3	91,0
Data per share
Number of outstanding shares at the end of the period, million	164,5	100,1	111,4
Average number of outstanding shares, million	134,4	100,1	100,5
Net Profit/Loss for the period, SEK	-0,34	-0,35	-1,33
Equity, SEK	27,2	28,5	27,3
NAV, SEK	28,6	29,4	29,0
Financial key metrics
NAV, SEKm	4 708	2 937	3 196
Equity ratio, %	55,8	44,3	47,1
Return on equity, %	-1,2	-1,4	-4,7
Interest-bearing net debt, SEKm	1 834	2 716	2 687
Loan to value, net (LTV), %	27,8	45,8	45,0
Average closing interest rate, %	5,3	5,1	5,3
Loan maturity, years	2,1	2,5	2,2
Average fixed interest rate term, years	3,1	2,2	2,2
Interest coverage ratio, multiple	2,0	2,0	2,1

Alternative performance measures & definitions

According to these guidelines, an alternative performance measure is a financial measure of historical or future earnings development, financial position, financial results or cash flows that is not defined or specified in applicable rules for financial reporting (IFRS and the Swedish Annual Accounts Act).

Property related
Investment properties excluding projects, SEK m	Fair value of investment properties excluding values relating to project properties at the end of the period.
Investment properties, SEK per m2	Fair value of investment properties at the end of the period in relation to lettable area.
Rental value, SEK m (excl. project properties)	Contracted rent at the end of the period plus estimated market rent for vacant premises.
Rental value, SEK m per m2 (excl. project properties)	Contracted rent at the end of the period plus estimated market rent for vacant premises in relation to lettable area.
Average remaining contract period, years	Remaining total contract value in relation to total annual rent.
Net lettings, SEK m	Rental contracts entered into during the period, including renegotiated existing contracts, minus contracts terminated due to tenants moving out.
Occupancy rate, economic, %	Contracted rent for rental contracts in effect at the end of the period in relation to rental value.
Occupancy rate, by area, %	Let area in relation to lettable area.
Yield, properties, %	Estimated net operating income on an annual basis (net operating income for the period extrapolated to a full year) in relation to the fair value of properties excluding project properties at the end of the period.
Surplus ratio, %	Net operating income in relation to rental income for the period.
Share related
Average number of shares during the period before dilution, million	Number of shares at the beginning of the period, adjusted for the number of shares issued during the period, weighted by the number of days the shares have been outstanding, in relation to the total number of days during the period.
Profit from property management per share, SEK	Profit from property management attributable to the Parent Company's shareholders in relation to the average number of shares during the period.
Earnings per share for the period, SEK	Earnings for the period attributable to the Parent Company's shareholders in relation to the average number of shares during the period.
Equity per share, SEK	Equity attributable to the Parent Company's shareholders in relation to the number of shares at the end of the period.
Long-term net asset value per share, SEK	Long-term net asset value relative to the number of shares excluding subordinate shares at the end of the period. Subordinate shares were withdrawn during Q2 2024.

Financial

Long-term net asset value, SEK m	Equity attributable to the Parent Company's shareholders with add-back of interest rate derivatives, deferred tax and goodwill. The definition is in line with definitions provided by EPRA.
Equity/assets ratio, %	Equity in relation to total assets at the end of the period.
Average equity	Average of equity at the beginning of the period and equity at the end of the period.
Return on equity, %	Net profit in relation to average equity for the period. In the interim financial statements, profit has been converted into a full-year figure, with the exception of changes in value, without taking seasonal variations into account.
Interest-bearing net debt, SEK m	Interest-bearing liabilities minus cash and cash equivalents.
Loan-to-value ratio, net, %	Interest-bearing liabilities minus cash and cash equivalents in relation to the total fair value of properties at the end of the period.
Loan-to-value ratio, gross, %	Interest-bearing liabilities in relation to the total fair value of properties at the end of the period.
Average interest at the end of the period, %	Weighted interest on interest-bearing liabilities taking into account interest rate derivatives on the balance sheet date.
Interest coverage ratio, adjusted, multiple	Profit from property management adjusted for items affecting comparability with add-back of net financial items in relation to net interest income for the period (RTM/rolling 12 months).
Net operating income	Rental income less operating and maintenance costs.
Net financial items, adjusted	Net financial items adjusted for exchange rate effects and other financial expenses.
Items affecting comparability	Material non-recurring items not directly linked to the ongoing business, such as items relating to the creation of the Group and preparation for the planned IPO.

		2024	2023	2023
Derivation of property-related key metrics		Jan-Sep	Jan-Sep	Jan-Dec
Investment properties, SEKm		6 594	5 936	5 964
Project properties, SEKm	-	-771	-278	-321
Investment properties, excluding projects, SEKm	=	5 823	5 659	5 643
Investment properties, SEKm		6 594	5 936	5 964
Letting area, 000 m²	/	289	253	262
Investment properties, SEK/sq.m.	=	22 849	23 452	22 752
Contracted rent, SEKm		390	353	377
Assessed market rent vacant areas, SEKm	+	4	7	7
Rental value, SEKm (excl. project properties)	=	394	360	384
Rental value, SEKm		394	360	384
Letting area, excluding project properties, 000 m²	/	254	234	239
Rental value, SEK/m² (excl. project properties)	=	1 551	1 538	1 606
Remaining total contract value, SEKm		3 548	3 369	3 534
Annual rent, SEKm	/	390	353	377
Average remaining term, years	=	9,1	9,5	9,4
Entered leases during the period (incl renegotiated), SEKm		51	35	57
Terminated leases during the period, SEKm	-	11	15	19
Net lettings, SEKm	=	40	20	38
Contracted rent by the end of the period, SEKm		390	353	377
Rental value, SEKm	/	394	360	384
Occupancy rate, economic, %	=	98,9%	98,1%	98,2%
Leased areas, 000 m²		252	231	237
Letting area, excluding project properties, 000 m²	/	254	234	239
Occupancy rate, lettable area, %	=	99,0%	98,8%	99,0%
Rental income, SEKm		321	279	390
Property Costs, SEKm	-	-66	-58	-76
Net operating income, SEKm	=	255	221	314
Net operating income annual basis, SEKm		340	295	314
Investment properties, excluding project properties, SEKm	/	5 823	5 659	5 643
Yield, properties (%)	=	5,8%	5,2%	5,6%
Net operating income, SEKm		255	221	314
Rental income, SEKm	/	291	245	345
Surplus ratio, %	=	87,7%	90,3%	91,0%

		2024	2023	2023
Derivation of financial key metrics		Jan-Sep	Jan-Sep	Jan-Dec
Profit/loss for the period attributable to Parent Company shareholders,
SEKm		-46	-35	-133
Average number of outstanding shares, million	/	134	100	100
Net Profit/Loss for the period per share, SEK	=	-0,34	-0,35	-1,33
Equity attributable to the Parent Company's shareholders, SEKm		4 467	2 852	3 046
Number of outstanding shares at the end of the period, million	/	165	100	111
Equity per share, SEK	=	27,2	28,5	27,3
Equity attributable to the Parent Company's shareholders, SEKm		4 467	2 852	3 046
Interest-rate derivatives, SEKm	-/+	43	-72	-18
Goodwill, SEKm	-	-174	-191	-181
Deferred tax, SEKm	+	371	349	350
NAV, SEKm	=	4 708	2 937	3 196
NAV, SEKm		4 708	2 937	3 196
Number of outstanding shares excluding debenture shares at the end
of the period, million	/	165	100	110
NAV per share, SEK	=	28,6	29,4	29,0
Equity, SEKm		4 467	2 858	3 051
Total assets, SEKm	/	7 999	6 457	6 477
Equity ratio, %	=	55,8%	44,3%	47,1%
Net profit, SEKm		-45	-39	-138
Average equity, SEKm	/	3 759	2 861	2 958
Return on equity, %	=	-1,2%	-1,4%	-4,7%
Interest-bearing debt, SEKm		2 947	2 900	2 882
Cash and cash equivalents, SEKm	-	1 113	184	195
Interest-bearing net debt, SEKm	=	1 834	2 716	2 687
Interest-bearing net debt, SEKm		1 834	2 716	2 687
Investment properties, SEKm	/	6 594	5 936	5 964
Loan to value, net (LTV), %	=	27,8%	45,8%	45,0%
Profit from property management R12, SEKm		97	87	98
One-off items, SEKm	+	36	36	21
Finance net, SEKm	+	161	133	158
Finance net, adjusted, SEKm	/	144	131	134
Interest coverage ratio, multiple	=	2,0	2,0	2,1

Financial calendar

Year-end report 2024 19 February 2025

Annual Report and Sustainability April 2025

Report 2024

Q1 interim report 2025 24 April 2025

Q2 interim report 2025 18 July 2025

Contact details

Martin Lindqvist, CFO Martin.lindqvist@prismaproperties.se + 46 (0)70-785 97 02

Prisma Properties AB (publ) Mäster Samuelsgatan 42 SE-111 57 Stockholm Sweden